GBP/USD a wobble over the weekend news

The pound started off soft on the open with a bearish gap that has since been filled. However, the weekend news is likely to be the key driver for the pound this week ahead of  UK GDP Q1.

Firstly,  PM May is putting her foot down in hardline style negotiation tactics by announcing her stand on the Brexit Bill. She has said that Brussels must pay its own Brexit bill of billions of pounds for Britain's share of the European Investment Bank and other joint projects. Subsequently, the European Union ministers will meet in Brussels today to discuss their Brexit negotiating position. This comes as the U.K., in fact, have threatened to quit talks on its departure unless the EU drops its demands for a divorce payment as high as 100 billion euros ($112 billion).

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Secondly, the latest polls are showing that the UK's Conservatives are losing ground on its policies that have recently been set out. There is a majority in social media that is favouring Corbin's Labour party. A YouGov poll showed her lead had halved to 9 points in a week. Four polls over the weekend,  however, have shown that the Conservatives with a majority and still easily ahead of the Labour Party on 33 to 35 percent, but pointing to a smaller projected majority of about 40 seats.

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GBP/USD levels

Technically, Valeria Bednarik, chief analyst at FXStreet explained, however, that the bullish stance persists given that in the daily chart, the pair has managed to hold above a bullish 20 DMA, currently at 1.2920, with pullbacks to it attracting buying interest. "Indicators in the mentioned time frame head north within positive territory, but with a well-limited momentum."

GBP/USD 4hr chart

Bednarik explained that in the 4 hours chart, the 20 SMA provides support, in this case around 1.2960, while technical indicators head nowhere within a positive territory.